Question 1

Is the 25% casual loading enough to make up for missing entitlements?

Accepted Answer

On pure cash, the 25% loading is calibrated to be roughly equivalent to the value of permanent entitlements — annual leave + personal leave + public holidays + redundancy + notice + super on those leave hours. At full-time hours (38 hr/wk), the loading edges slightly ahead of the entitlement value in dollars. The real decision sits in non-cash factors: unfair-dismissal protection, redundancy eligibility, parental leave eligibility, and how lenders treat your income for mortgages and rentals.

Question 2

What are the conversion rules under Closing Loopholes 2024?

Accepted Answer

From 26 August 2024, casual conversion runs under a new s.66AAB regime. An eligible casual employee can give written notification to the employer that they consider themselves no longer a casual. Eligibility: 6 months service for non-small-business employers, 12 months for small business (under 15 employees), with a regular pattern of hours over the qualifying period. The employer must respond in writing within 21 days. Refusal must be in writing and on specific grounds (e.g. the employee doesn't meet the eligibility, the work pattern is genuinely irregular). Disputes go to the Fair Work Commission.

Question 3

Why does it matter for a mortgage application?

Accepted Answer

Most Australian lenders treat casual income with a heavier discount than permanent income — typically 60–80% of casual earnings count toward serviceability, vs 100% for permanent. Some lenders require 12+ months of casual income before they'll consider it at all. If you're applying for a home loan in the next year, becoming permanent (even with no change to your hours) can materially improve borrowing capacity.

Question 4

Can I lose the conversion offer if I say no?

Accepted Answer

Sort of. Closing Loopholes 2024 includes a 'no further offer for 6 months' rule — if your employer offers conversion and you decline (or don't respond), they don't have to repeat the offer for 6 months. You don't lose the right to notify under s.66AAB yourself, but the employer's proactive obligation pauses. So if you're unsure, it's better to ask for time to consider rather than to flat refuse.

Question 5

What happens if my employer refuses my conversion request?

Accepted Answer

The refusal must be in writing and must set out the grounds. The grounds in s.66AAB(3) are limited: you don't meet eligibility, the work pattern is irregular, complying would substantially change your work pattern, conversion would require significant adjustment to the employer's enterprise. If you believe the refusal is unsupported, you can take the dispute to the Fair Work Commission. Don't accept a verbal refusal — insist on the written response with reasons.

Casual or Permanent — Which Should I Be?

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